Dubai TV Interview, March 8, 2021

In an interview with Dubai TV, Director of Research and Development at Noor Capital, Mohamed Hashad takes a closer look at the markets.

Oil

Purchasing biases pushed crude oil prices to touch the highest level since October 2018, and we can say that the biggest supporter of the rise in oil prices was the last decision by the OPEC alliance to extend the production cut plan until next April, contrary to market expectations. There is also a major factor that contributed to the increase in oil prices, which is the fear of supply shortages in the Kingdom of Saudi Arabia after several attacks on oil facilities. As well as the state of optimism prevailing in the markets at the present time regarding the positive developments of the US stimulus package to support the US economy, improvement in industrial activity, and thus higher oil prices. All this pushed prices higher and I think that the awaited oil levels do not rule out reaching $70 or $71 today or tomorrow.

Gold

With the opening of this week’s sessions, gold continues to decline for the third week in a row and touches its lowest level in 9 months. Good employment numbers, an improvement in the labor market in the United States, and the success of the US economy in adding 379 thousand jobs, one of the factors that put pressure on prices despite the Senate approval of the US stimulus package amounting to 1.9 trillion dollars of direct government spending did not succeed in pushing gold prices higher.

Bitcoin

Bitcoin continues to rise and touches the level of $ 50,000 with the support of companies and major financial institutions, and the obsession with Bitcoin may drive a further increase, and we may see at one time injection of liquidity from cryptocurrencies as it has become a competitor for gold.